Page 40 - E2 Integrated Workbook STUDENT 2018
P. 40
Chapter 3
Positioning and resource-based views
2.1 Introduction
The positioning view and the resource-based view, look how the organisation
attempts to gain competitive advantage.
2.2 Positioning view
The positioning view sees competitive advantage stemming from the firm's position in
relation to its competitors, customers and stakeholders. It is sometimes called an
'outside-in' view because it is concerned with adapting the organisation to fit its
environment.
Supernormal profits result from:
high market share relative to rivals
differentiated products
low cost.
Criticism of the positioning view is that the competitive advantage
achieved as the result is not sustainable. These advantages are easily
copied by competitors in the long run.
2.3 Resource based view (RBV)
The resource-based view sees competitive advantage stemming from some unique
asset or competence possessed by the firm and not easily duplicated by competitors.
This is called an 'inside-out' view because the firm must go in search of
environments that enable it to harness its internal competencies.
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